Vantage Drilling Company Announces Commencement of Operations for the Tungsten
Explorer and Provides Company Update
HOUSTON, TX -- (Marketwired) -- 09/23/13 -- Vantage Drilling Company
("Vantage") (NYSE MKT: VTG) announced today that the ultra-deepwater
drillship, Tungsten Explorer, commenced initial operations in
Southeast Asia on the morning of September 20, 2013.
Vantage also announced that the Sapphire Driller has received a
Letter of Intent for an eighteen month contract plus options to work
in West Africa. This contract will replace the previously announced
two-year Letter of Award, as Vantage was unable to satisfactorily
resolve significant contract issues with the previous customer. The
estimated revenue over the initial eighteen month term of the
contract is approximately $100.4 million, including mobilization.
Vantage provided an update for Sigma Drilling Ltd. (Sigma) which is
contracted to build the ultra-deepwater drillship, Palladium
Explorer, at the STX Offshore & Shipbuilding Co. Ltd. (STX)'s yard in
South Korea. As has been widely reported, STX has commenced, with the
support of the Korean Development Bank and its other banks, to
significantly restructure STX's operations and finances. In
connection with these restructuring efforts, STX has currently
suspended construction efforts for the Palladium Explorer. Sigma and
Vantage are discussing with STX the possible means for execution of
the remaining contracted work scope. It is anticipated that an
agreeable work plan would result in a delivery in the first or second
quarter of 2016. If a new work plan acceptable to Sigma and Vantage
is not agreed, it is possible that the contract with STX will be
terminated and refund guarantees will be claimed along with other
available remedies. Sigma's investment in the Palladium Explorer is
covered by a refund guarantee provided by a Korean bank.
Vantage also noted that it is winding down its efforts with respect
to construction oversight of the Dalian Developer, which Vantage has
been providing at a shipyard in China on behalf of its customer.
Vantage plans to provide additionally limited support, as necessary,
and is to receive another six months of revenues from the project.
Vantage, a Cayman Islands exempted company, is an offshore drilling
contractor, with an owned fleet of four Baker Marine Pacific Class
375 ultra-premium jackup drilling rigs and three ultra-deepwater
drillships, the Platinum Explorer, the Titanium Explorer, and the
Tungsten Explorer as well as an additional ultra-deepwater drillship,
Cobalt Explorer currently under construction. Vantage's primary
business is to contract drilling units, related equipment and work
crews primarily on a dayrate basis to drill oil and natural gas
wells. Vantage also provides construction supervision services for,
and will operate and manage, drilling units owned by others. Through
its fleet of seven owned and managed drilling units, Vantage is a
provider of offshore contract drilling services globally to major,
national and large independent oil and natural gas companies.
The information above includes forward-looking statements within the
meaning of the Securities Act of 1933 and the Securities Exchange Act
of 1934. These forward-looking statements are subject to certain
risks, uncertainties and assumptions identified above or as disclosed
from time to time in the company's filings with the Securities and
Exchange Commission. As a result of these factors, actual results may
differ materially from those indicated or implied by such
For further information, contact:
Paul A. Bragg
Chairman and Chief Executive Officer
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